Late rent payments by a tenant are linked with his financial conditions. But it is also linked with human behaviour. Some people are careless and they cannot help but be neglectful even when it comes to paying timely for what they owe. If you are in a contract for rent to own property, then this behaviour can bring harm in various ways.
Rent to own home contract is not like a contract that tenants usually sign with the landlords. The legalities and complexities involved are more than you think. Before we move to the consequences of continuously paying late to your rent to own home company, take this advice, ‘change your behaviour, and start paying the rent on time.’
Here are some of the consequences that you, as a buyer, will have to bear for paying rent late while you are bound with a home rent to own in Florida contract:
No Option to Renew the Contract
Paying rent is not only a matter of money but also builds your relationship with the property owner. If you pay timely, the relationship will be based on trust. This trust can help you in future. As lease to own home contracts demand the remaining purchase price to be paid when the contract ends. Sometimes, tenants need more time to arrange money.
The company with which you have signed the lease to own home contract will renew the contract for more time only if you have maintained your relationship of trust. It is better to manage to pay on time.
Contract Termination
Businesses that target to turning renters into owners sometimes add terms in the contract that if rent is not paid within a certain time limit, the contract will be terminated altogether. In that case, you will lose the previously paid rent as well as the property that you intend to own by the end of the contract.
If you do not want to face such a situation, it is better to somehow arrange money and pay the rent. If your financial conditions are not good, then talk to your real estate agent. Ask for some time before the deadline to pay the rent.
Late Home Maintenace
Most of the people signing the rent to buy properties contract prefer that their company pays for the home maintenance till the contract ends.
When you do not pay charges on time, the company would probably stop paying you for the home maintenance. Sometimes they add such terms in the contract so they can make their clients pay in time. It is advisable to read your contract thoroughly. Follow its terms religiously.
Extra Charges
Every rent to own company has some penalty for those who pay rent late. It is not that these companies target to extract money from the pockets of their clients. Sometimes, clients nag the real estate agents when it comes to paying rent. The companies have to add it as a term in the contract that they will charge a penalty after the deadline to pay the rent.
If there is such a term in your contract, there is only one way to avoid it. Pay your rent on time.
Legal Actions
There are some other legal actions that your company can take against you for paying rent late. The company that manages your property can take this matter to the credit bureaus. It will not only hit your credit score but also create problems for you when you will look for another home. You will probably not be able to find an apartment. It can become very difficult to even apply for property loans.
Rent to own home contract is different from a normal contract that tenants sign to get apartments or homes on rent. The legalities and liabilities are more than a normal rent to own home contract. So, it is better to thoroughly study the situation of your bank account. Rent to own companies are lenient about their policies. If there are some affordability issues, you can directly talk to your real estate agent and take him in confidence. He can help you find a way out. Dream America has a team of reliable real estate agents whom you can contact to discuss your financial standing and plans to sign the rent or lease to own home contracts.
